When a market is segmented and marketing resources are limited, the marketer may decide to pursue a large segment strategy. A mass market may be segmented say into three core segments. One of the segments, which is large enough and representing 50% or more of the market would be the centre of focus.
We may also call it as the Single-segment marketing. It means to concentrate organisation’s marketing efforts on a single segment. Unfortunately there are large risks associated with this strategy. Should the chosen segment cease to be viable the firm would also cease to operate.
Putting all the eggs into one basket can be hazardous. For example one-hour photo has lost to digital photo camera, fax servicing has lost to e-mail, pager has lost to mobile phones, and STD booths have lost due to cheaper telecom services. Single market segment strategy can also be called as ‘concentrated targeting strategy or ‘niche’ strategy.